Originally written by Timothy Adler on Small Business
Rachel Reeves, chairman of the Parliamentary business select committee, sees business rates reform as the tool to heal hurting small businesses.
Speaking at an event this afternoon organised by the Federation of Small Businesses, Reeves said the Government’s priority has been cutting corporation tax for corporates, while ignoring small businesses.
Reeves said: “Small businesses are the backbone of the economy. They’re where future profits, employment come from. Labour in government would do all it can to support small businesses so you can grow to create prosperity throughout the country.”
The Labour MP said that the burden of business rates was felt very keenly by small business.
“I would like to see the priority of business taxation to help smaller businesses and start-up businesses, rather than cutting corporation tax, which benefits larger businesses,” Reeves said.
“We hear time and time again of the challenges of business rates. Business rates reform need to be looked at in the round, rather than just benefiting large businesses,” the Labour MP said.
FSB policy head Martin McTeague added that a first step should be stop linking business rates to inflation, which would easily be within Government’s remit.
McTeague said: “Business rates are a broken system,